Brokerages Remain Bullish for 2026

Due to strong economic growth predictions, possible rate cuts, and a resurgence of corporate earnings, Indian brokerages and international research organizations have become optimistic about the Indian equity market for 2026. Strong market mood and a positive outlook among key analysts were reflected in the Sensex's recent surge to a new all-time high above 86,000.

Key Market Targets for 2026

The most bullish prediction comes from Morgan Stanley, which says the Sensex might hit 107,000 by December 2026. This suggests a nearly 24% increase above present levels, bolstered by anticipated strong corporate earnings growth and favourable domestic demand patterns.

HSBC has set a target of 94,000 for the Sensex by the end of 2026, projecting a gain of 9–10%. Analysts at HSBC stress that India's market is more affordable than China's and predict that profitability would increase as interest rates decline.

With strong conviction picks like Reliance and Titan, as well as industries like banking, consumer goods, and defense, Goldman Sachs is overweight on India and anticipates an acceleration of earnings. By the end of 2026, they predict that the Nifty will have increased by almost 14% to 29,000.

The base-case Nifty 50 objective set by JPMorgan has been increased to 30,000 by the end of 2026. According to the firm, India is entering a "mid-cycle" period, which will be fueled by favourable monetary and fiscal policies as well as a reduction in the uncertainty surrounding international commerce.

The domestic brokerage Prabhudas Lilladher has increased its one-year Nifty forecast to 29,094 because it is optimistic about large caps. Financials, consumer equities, defense, and a few mid-caps are among their top choices.

Divers of Bullish Sentiment

Improving consumption, potential interest rate reductions by the US Federal Reserve and RBI, and strong government support for manufacturing and infrastructure are the main causes of optimism.

Indian stocks are predicted to beat the S&P 500 and Shanghai Composite in 2026, marking an anticipated reversal of their underperformance relative to global benchmarks.

Financials, consumer durables, banking, manufacturing, defense, and some technological themes like AI-driven data centers are important industries that are thought to be growth leaders.

Broder Market Prospective

With gains of 7.2% this quarter and 2.5% so far in November, the Sensex and Nifty 50 show significant momentum going into FY26.

Although the consensus is still largely positive, brokerages have identified risks like as high valuations, uncertain global trade, and policy shifts.